The Dow In Euros

The red line is how the American stock market looks to a foreign investor with "hot money."

Note that the decline in the strength of the dollar has not been matched by an equally dramatic quantity of domestic inflation.

The lack of inflation equivalent to the currency exchange rate is due, in part, to the fact that the import-export sector while important, is a fairly modest part of the total economy. The biggest impact on the domestic economy from the import-export sector has come from oil prices.

The lack of inflation equivalent to the currency exchange rate is also due, in part, to the fact that the dollar has been overvalued relative to its true purchasing power in the foreign exchange markets for some time, mostly due to manipulation of the market by sovereign traders (especially the U.S. and China) and due to the dollar's now largely dissipated role as a "flight to safety" currency serving a role similar to that of Swiss Francs and gold.